Mis sold pension mortgage?!

chrystal_tipps

I am every new to this and this is my first ever posting....
Wondering if there is anyone out their who could help.
We took out a pension mortgage in 1990, which is due to finish next year. I know I've left this rather late, but having done a bit of digging and I'm somewhat confused.
The mortgage was agreed with a life policy for the amount of borrowing which was taken out in April 1990 and would cease April 2105. However, we were advised by the Prudential in Oct 1995 to increase my husbands life cover to the original value of the property, therefore cancelling the orginal policy and a new one being set up, not due to finish till Oct 2015 . This policy is purely a life policy without bonus participation
Going through all the paperwork I cannot find how the balance of our mortgage is going to be paid off in April, as the documents relating to this mortgage appear to only be life policy?
Both me and my husband have private pension ( both self employed) but the specified retirement date on my husbands policy is 2019 when he will be 65. Mine would also be around the same time.
Luckily we have been paying off capital on the mortgage but by the time it is due to finish there will still be around £19,000 outstanding.
Can anyone give me some sound advise. I would be very grateful and at least have some idea as what next steps to make.

Goldiegirl

The idea behind pension mortgages was that the borrower would pay interest only throughout the life of the mortgage, and the mortgage would be cleared on retirement, by the lump sum from the pension.

Just wondering, didn't it occur to you at the time you applied for the that the mortgage was due to end in 2015, whereas your pension wasn't due until 2019?

Probably the best thing you can do now is you contact your lender as see if they are willing to extend the term of the mortgage by 4 years

dunstonh

You say you took out a pension mortgage. There is actually no such thing. Although we know what you mean. You took out a mortgage on interest only basis. That mortgage needs repaying in 2015.

There are different way to repay that mortgage. Endowment, PEP (now ISA), pension lump sum, other savings/investments or sell up. You are saying you took out pensions.

you can largely disregard the life assurance as that would be expected on all mortgage types.

Did you take out the pensions at the same time as the mortgage? (the retirement age on most pensions is irrelevant. it is little more an indicator used to send out the annual projections to that age. You can take them between 55 and 75).